Cherry v. Premier Prints, Inc.

CourtDistrict Court, N.D. Mississippi
DecidedAugust 23, 2022
Docket1:21-cv-00059
StatusUnknown

This text of Cherry v. Premier Prints, Inc. (Cherry v. Premier Prints, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cherry v. Premier Prints, Inc., (N.D. Miss. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF MISSISSIPPI ABERDEEN DIVISION

DAVID L. CHERRY PLAINTIFF

v. CIVIL ACTION NO. 1:21-CV-59-SA-DAS

PREMIER PRINTS, INC. DEFENDANT

ORDER AND MEMORANDUM OPINION On March 24, 2021, David L. Cherry initiated this civil action by filing his Complaint [1] against Premier Prints, Inc. Now before the Court is Premier Prints’ Motion for Summary Judgment [38]. Having reviewed the parties’ filings, as well as the applicable authorities, the Court is prepared to rule. Relevant Factual Background David L. Cherry is a homosexual male who was previously employed by Premier Prints, a fabric manufacturing company located in Sherman, Mississippi. Premier Prints, a relatively small company of approximately 30 employees, was jointly started around 1991 by three brothers— Norman “Zeke” Hodges, Johnny Hodges, and Billy Hodges—each of whom owned one-third of the company.1 Primarily, the company manufactures fabric and sells it across the United States. Cherry began his employment with Premier Prints in November 1996. Zeke Hodges, who serves as president of the company, made the decision to hire Cherry. Throughout his employment, Cherry held numerous positions with the company. In approximately 2004 or 2005, he transitioned from the production side of the company to the sales side and became both the General Manager and the Sales Manager. Although taking on more of a sales role at this time, he was still very

1 After Johnny Hodges’ death around 2017, his wife, Sherry Hodges, assumed his one-third ownership interest in the company. involved with production. At all times pertinent to this lawsuit, Cherry was the company’s highest ranking non-equity employee. From the time Cherry’s employment commenced until around 2013, Premier Prints’ sales volume and profits consistently improved each year. In 2013 (the high-water mark), the company had a sales volume of $23,204,219 and a profit of $5,950,018; however, it experienced a dramatic

decrease over the next several years. By comparison, four years later in 2017, the company’s sales volume had dropped to $13,610,093 and profits had decreased to $1,649,010. This is where the parties’ respective versions of events diverge. On the one hand, Cherry testified that the decrease in sales and profits could be linked to increased foreign competition in the market. He stated that the entire industry experienced similar diminished sales and profits. On the other hand, Premier Prints contends that the decrease was due to a strategy Cherry had implemented. The company frames that issue as follows: Premier’s sales and profits had been dropping at an alarming rate since 2013. The initial fundamental issue between Premier’s owners and Cherry was the disagreement between Billy and Cherry on the direction of the company. Billy felt that Premier should continue to make more basic, lower cost products, that he felt was responsible for Premier’s earlier success. Cherry wanted to, in Billy’s words, “reinvent[] Premier Prints” by running more complex and costly designs. These concerns were echoed by Zeke, but it seems that the principal actors in this ongoing dispute were Billy and Cherry. This issue continued for some time until Billy finally acquiesced. However, in acquiescing, Billy told Cherry that he would “give you enough rope to hang yourself, but please don’t. And he did it anyway. He didn’t stop. He kept doing it.”

[39] at p. 5 (internal citations omitted). In March of 2018, the owners removed certain operations responsibilities from Cherry and directed him to concentrate more exclusively on sales. His compensation was restructured from being based on production to a sales commission structure. As with the reason for the company’s decreased sales, the reason for the change in Cherry’s job responsibilities and his pay structure is disputed. Premier Prints contends that the change was the product of Cherry’s ongoing lack of commitment, communication, and engagement. In fact, Zeke testified that he told Cherry around this time that he was “headed down the wrong direction.” [38], Ex. 2 at p. 7. Conversely, Cherry avers that he had various conversations with the owners and that they ultimately reached the

conclusion to shift him to sales “so he could find out what the problems were [with the company’s sales] and talk to the customers.” [45] at p. 7. In September 2019, Cherry married his husband, Cameron Horn. Cherry contends that, prior to September 2019, nobody at Premier Prints knew that he was homosexual and that, once word of his marriage spread across the company, everyone “seemed shocked.” [44], Ex. 1 at p. 18. He avers that he was scared to reveal his sexual orientation to anyone at Premier Prints because he knew that Zeke had a negative opinion of homosexuals. Cherry addressed that issue in detail in one of his written discovery responses, stating as follows: I knew [Zeke] had a negative opinion of gay men because he told me multiple times about his former boss that was gay and that it disgusted him. He also frequently made derogatory remarks behind the backs of men that either were gay or that he perceived as gay. Examples are Greg Morgan and Bill Butchkavitz. His favorite remarks were, “Should I turn queer or get a sex change?” And he would take fabric samples and hold them in front of his genitals and say, “Do you like the samples now?” He did this in front of Clint Wright and Michael Hodges as well as me. The customers never knew he was making those statements. He also slapped me on my buttocks as a congratulations. All of which made me very uncomfortable and afraid for him to find out that I am a homosexual. He also made very primitive and degrading remarks about Cliff Walters when he was an employee. I knew he would have a negative response if he ever found out that I am a gay man.

[44], Ex. 5 at p. 4. Cherry expounded on these allegations in his deposition, testifying that Zeke made these comments “periodically through the years” at various trade shows, including Las Vegas, Los Angeles, and High Point. [44], Ex. 1 at p. 18. Further, when asked about whether he thought Zeke was acting maliciously when making those comments, Cherry stated: “I don’t know that I tried to assess his intent. I was just trying to not react bad so that he would either attack me or fire me[.]”

Id. at p. 19. As to Cherry’s allegations, Zeke admitted that he “put fabric samples in front of [his] genitals and said ‘do you like the samples now’” on one occasion, but he said that it was “just a joke to Michael [Hodges].” [38], Ex. 2 at p. 8. According to Cherry, after everyone at the company learned of his marriage to Cameron, his fears about Zeke and others learning about his sexual orientation ultimately became a reality. He testified that his relationship with Zeke changed drastically after Zeke learned of his marriage— in particular, he testified that, despite previously having enjoyed a good relationship with Zeke, they rarely communicated from that point forward. Premier Prints points to two events which occurred in late 2019 that it considered critical.

The first event involved a company called “Chapter Three,” which was one of Premier Prints’ biggest accounts. Zeke, Cherry, and Chapter Three’s owner had a lunch meeting, during which Zeke expressed his sincere appreciation for Chapter Three’s continued business. However, unbeknownst to Zeke, Chapter Three’s account was significantly past due. Premier Prints contends that Cherry was aware of Chapter Three’s overdue account status but intentionally did not advise Zeke of the same. Cherry testified to the contrary, specifically testifying he was unaware of the issue at the time of the lunch meeting. Also, in November 2019, Cherry took Cameron with him to the trade show in High Point, North Carolina.

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Cherry v. Premier Prints, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/cherry-v-premier-prints-inc-msnd-2022.